May 22, 2007
Jefferson City, Mo. — Attorney General Jay Nixon said today the $45 million rate increase awarded to St. Louis utility Ameren Corporation by the Missouri Public Service Commission (PSC) is groundless and would be a needless drain on ratepayers. Nixon's office plans to file an appeal of the PSC order, which was passed today.
“Missouri's families should have received the rate cut that my office requested of the PSC,” Nixon said. “We will appeal this decision to keep fighting for more affordability and accountability.”
After Ameren filed its initial rate increase of $360 million, Nixon's office conducted an extensive audit of the company's books and records to determine the accuracy of its claims that increased costs necessitated such a massive rate increase. The audit revealed a number of areas where Ameren made omissions, improper accounting proposals or overstated costs in the company's request for the rate increase, which would have been a state record. Though Ameren received an increase for far less than it requested, Nixon says it is still unacceptable to consumers.
“We have completed an exhaustive examination of Ameren's books, with the clear conclusion that the company is not entitled to any rate increase,” Nixon said. “They are overcharging for services that would make their shareholders happy while socking it to Missouri's taxpayers.”
Nixon's office will file a motion for rehearing of the decision with the PSC before the operation of law date in the case. By law, the PSC then has 30 days to rule on the Attorney General's motion.